PriceSmart Announces 22.9% Increase to Annual Dividend

SAN DIEGO, Feb. 4, 2022 /PRNewswire/ -- PriceSmart, Inc. (NASDAQ: PSMT), operator of 49 warehouse clubs in 12 countries and one U.S. territory, today announced a 22.9% increase to its annual dividend, the election of one new member to the Board of Directors and the results of the Company's 2022 annual meeting of stockholders held on February 3, 2022.

Comments from Sherry S. Bahrambeygui, Chief Executive Officer:

"As the largest operator of membership warehouse clubs in Central America, the Caribbean and Colombia, PriceSmart continues to generate significant cash flow from operations to fund our plans to:

• Drive new club growth
• Increase services and benefits to our Members, enhancing the value of the Membership; and
• Generate incremental sales through PriceSmart.com and our digital capabilities. 

Our cash flow continues to enable us to accelerate investments to drive growth, improve our ability to serve our Members during the most challenging of times, and ensure that our employees receive competitive wages and excellent benefits.  Our Board has now approved an increase of 22.9% to the annual dividend to shareholders of our common stock.

We are pleased that the strength of our membership-driven business model and our confidence in our ability to continue to generate strong cash flow allows us to ensure that we are taking good care of all of our stakeholders while making the investments that we believe will drive growth."

On February 3, 2022, the Company's Board of Directors declared an annual cash dividend in the total amount of $0.86 per share, with $0.43 per share payable on February 28, 2022 to stockholders of record as of February 15, 2022 and $0.43 per share payable on August 31, 2022 to stockholders of record as of August 15, 2022.

PriceSmart anticipates the ongoing payment of semi-annual dividends in subsequent periods, although the actual declaration of future dividends, the amount of such dividends, and the establishment of record and payment dates is subject to final determination by the Board of Directors at its discretion after its review of the Company's financial performance and anticipated capital requirements, taking into account all relevant factors, including, but not limited to, the uncertainty surrounding the ongoing effects of the COVID-19 pandemic on our results of operations and cash flows.

At the annual meeting of stockholders, ten nominees were elected to the PriceSmart, Inc. Board of Directors, including David Price.  Each director elected will continue to hold office until the next annual meeting of stockholders of PriceSmart, or until the director resigns or a successor is elected or appointed.  In addition to Mr. Price, the following directors were elected yesterday: Sherry S. Bahrambeygui, Jeffrey R. Fisher, Gordon H. Hanson, Beatriz V. Infante, Leon C. Janks, Patricia Márquez, Robert E. Price, David R. Snyder and Edgar Zurcher.

David Price has served as PriceSmart's Vice President of Omnichannel Initiatives & Social and Environmental Responsibility since September 2020 and co-manages the Company's Environmental and Social Responsibility strategy. Prior to his current role, Mr. Price was employed by the Company in various positions related to the development of the Company's digital strategy and initiatives since July 2017, most recently as Director of Ecommerce from August 2018 until August 2020. Mr. Price also has been a leader in the Company's ecommerce transformation and environmental and social responsibility initiatives. The Board of Directors nominated him for election as a director because it believes that including him on the Board will demonstrate to our stakeholders the significance and importance of these matters.

Stockholders also approved, on an advisory basis, the compensation of the Company's executive officers for fiscal year 2021 and ratified the selection of Ernst & Young, LLP as the Company's independent registered public accounting firm for the fiscal year ending August 31, 2022. A final report on voting results will be filed with U.S. Securities and Exchange Commission within four business days following the date of the annual meeting of stockholders.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S. style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. PriceSmart operates 49 warehouse clubs in 12 countries and one U.S. territory (nine in Colombia; eight in Costa Rica; seven in Panama; five in the Dominican Republic and Guatemala; four in Trinidad; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). In addition, the Company plans to open its 50^th club in Portmore, Jamaica in April 2022.

This press release may contain forward-looking statements concerning the Company's anticipated future revenues and earnings, adequacy of future cash flows, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors, the outcome of tax proceedings and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "plan," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: adverse changes in economic conditions in the Company's markets, natural disasters, compliance risks, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member or business information, cost increases from product and service providers, interruption of supply chains, COVID-19 related factors and challenges, including among others, the duration of the pandemic, the unknown long-term economic impact, the impact of government policies and restrictions that have limited access for our Members, and shifts in demand away from discretionary or higher priced products to lower priced products, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law.

For further information, please contact Michael L. McCleary, EVP, Chief Financial Officer and Principal Accounting Officer (858) 404-8826 or send an email to [email protected]

SOURCE PriceSmart, Inc.